Ruffy Coy., a small family-owned business, manufactures glue. It incurs $10,000 on advertising and promotions;...
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Ruffy Coy., a small family-owned business, manufactures glue. It incurs $10,000 on advertising and promotions; $5,000 on rent; and $50,000 on salaries. Raw materials cost $1.5/tube of glue, packaging and labeling cost $.5/tube of glue. A tube of Ruffy glue is sold for $5.
- What is Ruffys break-even point in units?
- What is Ruffys break-even point in dollars?
- If Ruffy wants a target profit of $20,000, and raised the price of its glue by $1, what is its new break-even point in units? And
- What is its new break-even point in dollars?
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